Case Note & Summary
The case arises from a motor accident claim filed by Smt. Rajashri Pramanik Sable, mother of the deceased minor Neil Pramanik Sable, who died in a road accident on 8th November 2019. The deceased, aged 10 years, was riding pillion on a motorcycle when a truck dashed it from behind, causing fatal injuries. The Motor Accident Claims Tribunal (MACT), Mumbai, awarded compensation of Rs.35,92,000/- with interest at 7.5% per annum. The insurance company, Reliance General Insurance Co. Ltd., appealed against the award, primarily challenging the multiplier of 18 applied by the Tribunal. The High Court examined the facts and legal principles. It noted that the deceased was a minor with no income, and as per the settled law in Sarla Verma v. DTC, the appropriate multiplier for a minor is 15, not 18. The court recalculated the compensation: notional income of Rs.15,000/- per annum (as per Second Schedule), multiplier of 15, and deduction of 50% for personal expenses, resulting in Rs.1,12,500/- for loss of dependency. Adding Rs.1,00,000/- for loss of love and affection, Rs.35,000/- for funeral expenses, and Rs.15,000/- for loss of estate, the total compensation was reduced to Rs.2,62,500/-. The court also upheld the Tribunal's finding of no contributory negligence and maintained the interest rate of 7.5% per annum. The appeal was partly allowed, reducing the compensation from Rs.35,92,000/- to Rs.2,62,500/-.
Headnote
A) Motor Accident Claims - Compensation for Minor Deceased - Multiplier - The Tribunal applied multiplier of 18 for a 10-year-old deceased minor, but the High Court held that for a non-earning minor, the appropriate multiplier is 15 as per Sarla Verma v. DTC, (2009) 6 SCC 121. The court reduced the compensation accordingly. (Paras 1-13) B) Motor Accident Claims - Contributory Negligence - The accident occurred when the motorcycle was dashed from behind by a truck; no contributory negligence was attributed to the deceased minor. The Tribunal's finding of no contributory negligence was upheld. (Paras 2-5) C) Motor Accident Claims - Interest Rate - The Tribunal awarded interest at 7.5% per annum; the High Court did not interfere with the rate of interest. (Para 13)
Issue of Consideration
Whether the Motor Accident Claims Tribunal erred in applying a multiplier of 18 and awarding compensation of Rs.35,92,000/- for the death of a minor child, and whether the compensation should be reduced.
Final Decision
The appeal is partly allowed. The impugned judgment and award is modified. The compensation is reduced from Rs.35,92,000/- to Rs.2,62,500/-. The rate of interest at 7.5% per annum is maintained. The appellant is directed to deposit the reduced amount with accrued interest within eight weeks.
Law Points
- Motor Accident Claims
- Compensation for Minor Deceased
- Multiplier for Non-Earning Minor
- Sarla Verma v. DTC
- Section 166 Motor Vehicles Act
- 1988
- Contributory Negligence
- Interest Rate
